Four, Three, Two...

Jordan is one step closer in finalizing a landmark free trade agreement with the US, which was signed just under one year ago with the Clinton Administration. After months of delays, the US House of Representatives approved the agreement on Tuesday. Further approval is needed by the US Senate, whose Finance Committee endorsed the agreement last Friday, before it actually becomes official. Under the agreement, Jordan and US bilateral trade will eventually become duty- and quota- free. If utilized wisely, this could reap unprecedented benefits for the Jordanian economy.

On the market, the AMI barely inched upwards closing at 94.05 after a mixed week between positive and negative territory. In terms of activity, the market did well, as around 9 million shares changed hands in deals worth JD16.4 million. Declining stocks outnumbered advancing ones by around three to two.

International Tobacco and Cigarettes (ITCC) led the way this week for advancing stocks as it jumped 24%, just under the maximum permissible limit on the ASE. Also leading the way was the steel sector as both Jordan Steel (JOST) and National Steel (NAST) ended up in the top ten performers for the week.

French cement giant, Lafarge Group has increased its holdings in Jordan Cement Factories Company (JOCM) to 47.5% after acquiring 2,423,400 from an undisclosed seller. It appears that Lafarge is confident that its restructuring plan at JOCM will eventually yield tangible results. Lafarge paid a 5% premium over the market price for this bloc.

Meanwhile, only a handful of companies have actually observed disclosure requirements set out by the Jordan Securities Commission. According to Article 8 under Directive Number One for the year 1998, Disclosure and Auditing & Accounting Standards, "[Companies] shall prepare a semi-annual report...within one month ...and shall provide the Commission [with copies]."